The veteran media executive, who made a last-minute bid to control Paramount last week, doesn’t believe any traditional media company has managed to truly control streaming. He thinks Paramount needs more specific skills in terms of customer acquisition and advertising sales, said the people, who asked not to be identified discussing plans that have not been made public.
Paramount’s streaming TV business earned $26 million on $1.88 billion in sales in the most recent quarter. Paramount+ has 68 million subscribers, far fewer than rivals such as Netflix Inc. and Walt Disney Co. Paramount took a $5.98 billion charge against its cable channels, which have lost viewers and advertisers as consumers shift to streaming.
Bronfman is also looking to partner Paramount with a company that can take it to the next level in terms of licensing its many brands for consumer products. The 69-year-old heir to the Seagram Co. liquor fortune is in a two-man race with independent film producer David Ellison to take control of Paramount, the home of CBS, MTV and other media companies.
$6 billion offer
Last week, Bronfman submitted a $6 billion offer to buy Redstone’s family holding company, National Amusements Inc., which owns the majority of Paramount’s voting stock, and to acquire more shares of the company. Bronfman is still working to secure final signatures for his financing package, but has all investors in place, the people said.
A special committee of Paramount’s board is expected to determine on Aug. 28 whether Bronfman’s proposal is superior to Ellison’s. If the board deems it appropriate, Ellison could submit a counteroffer before the Sept. 5 deadline.
Ellison plans to invest more than $8 billion in Paramount, acquiring shares from existing investors, buying out the Redstones and investing $1.5 billion in the company to reduce debt. He also plans to merge his Skydance Media film and television studio with Paramount at a valuation of $4.75 billion, something Bronfman says would dilute non-Redstone shareholders.
Both sides have offered Paramount Chairwoman Shari Redstone the opportunity to remain on the board if she chooses, according to several people familiar with the proposals. CNBC previously reported on Skydance and Bronfman’s proposal for Redstone to take a board seat.
Paramount is currently run by a trio of co-CEOs. Bronfman would become CEO if his bid wins, but he would like the other executives to stay on, the people said. He is also planning to bring on two other longtime media executives — former AOL executive Jon Miller and former Turner Broadcasting CEO John Martin — for roles at Paramount. Miller is a longtime partner at Redstone’s venture capital firm, Advancit.
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